Fincare Small Finance Bank offers 8.85% for senior citizen for 36-42 months term deposit
Shriram Finance offers 8.5% to senior citizens for 60 months term deposit on yearly interest payout
Senior citizens are typically defined as individuals who are 60 years or above. Many banks and financial institutions offer fixed deposit schemes with higher interest rates for senior citizens. The interest rates for senior citizens are generally higher by 0.25% to 0.75% compared to the rates offered to regular customers
For senior citizens, it’s their life savings. Most part of their EPF and other savings along the years get deposited in their trusted banks for a monthly/ quarterly interest which supplement their pensions. These interest income help them in running their house medical expenses and little extra in some leisure activities
So, while the interest rates on the rise, one should know the interest income they lock in the high interest rates.
Will revise the blog if the interest rates rises further post April 6th, 2023.
Small Finance Bank FD Rates
| Banks | Tenure (for highest interest income) | Senior citizen deposit rates |
| Equitas Small Finance Bank | 888 days | 8.70% |
| ESAF Small Finance Bank | 2 to less than 3 years | 8.50% |
| AU Small Finance Bank | 560 days | 8.75% |
| Fincare Small Finance Bank | 36 months 1 day to 42 months | 8.85% |
| Jana Small Finance Bank | 2 years – 3 years | 8.80% |
Bank FD Rates for senior citizen
| SFB | Tenure (for highest interest income) | Senior citizen deposit rates |
| State Bank of India | 2-3 years, 5-10 years | 7.50% |
| Canara Bank | 400 days | 7.65% |
| AXIS Bank | 2 years < 30 months | 8.00% |
| Federal Bank | 15 months to 2 years | 7.75% |
| HDFC Bank | 15 months to 18 months | 7.60% |
| South Indian Bank | 1 year 1 day | 7.50% |
NBFC FD Rates for senior citizen (Interest payout)
| NBFC | Tenure (for highest interest income) | Senior citizen deposit rates |
| Shriram Finance | 60 months | 8.5% (yearly payout) |
| Bajaj Finserv | 44 months | 7.95% (yearly payout) |
| ICICI Home Finance | 65 months | 7.95% (yearly payout) |
| Sundaram Finance | 24, 36 months | 8.01% (quarterly payout) |
Fixed deposits are added in the annual income and taxed at marginal tax slab. Premature closure allowed with applicable penal cut.
It’s important to note that fixed deposits are generally considered to be a safe investment option, in India, there is a deposit guarantee of upto Rs. 5 lakhs, insured by DICGC, but they may not provide high returns compared to other investment options. So, before investing in a fixed deposit, it’s important to assess your financial goals and risk appetite.
Other income options for senior citizens are PM Vyay Vandan Yojana, Senior Citizen Savings Scheme, annuity plans by life insurance companies
Apart from above lists, there are other Banks and NBFC options you can choose. You can visit the websites of different banks and financial institutions to compare their fixed deposit rates for senior citizens and choose the one that suits your needs.
